Bestinvest, the UK wealth manager and online investment service, has agreed to be acquired by a company owned by the Permira funds for an undisclosed sum. The transaction, which is subject to regulatory approval, is expected to complete in the first quarter of 2014. Jamieson Corporate Finance advised Peter Hall (CEO) and the other senior managers of Bestinvest on structuring the terms of their reinvestment and new equity incentive arrangements.
Bestinvest looks after some £5 billion of client assets and it provides a range of services for private investors whether they choose to make their own decisions or require investment advice, financial planning and investment management.
The UK wealth management industry offers attractive growth dynamics with assets increasing in excess of 10% annually in recent years. Despite recent consolidation it still remains very fragmented with a long tail of subscale firms with under £3 billion of client assets. The Permira funds will back Bestinvest’s plans to capitalise on the “advice gap” resulting from the Retail Distribution Review and will also help Bestinvest participate in the on-going industry consolidation.